Virgil Said:

Is there any way to get money out of a Health Savings Account?

We Answered:

You can only spend the money on health services. However, you do not Use it or Lose it.

From the United States Treasury web site:
HSA Frequently Asked Questions

Do unused funds in a Health Savings Account roll over year after year?
Yes, the unused balance in a Health Savings Account automatically rolls over year after year. You won’t lose your money if you don’t spend it within the year.

Jaime Said:

Can anyone here explain to me about health savings accounts and how they work?

We Answered:

A Health Savings Account is an investment type account that is needed by people with insurance plans with very high deductibles. It works like this: You get a high deductible plan (say $2500) from your employer. You are responsible for the deductible, before the policy will pay anything. So, if you are married, you might need as much as $5000 for medical expenses. You set up an account and have money payroll deducted into the account. If you need money for medical expenses, you would draw from this account to pay the bills. The money you deposit is not taxed, similar to an IRA or 401K. If you don't need the money, you can keep it there until you do, years down the road. You invest the money similar to an IRA or mutual fund. The policy premiums for your health insurance are low because you probably won't need it. If you do use all of your deductible money, then the health insurance kicks in, usually for 100% of the next increment (depends on the policy, possibly another $2500) then, after that first $5000, if you still have medical expenses, ususally the policy pays at least 80% and you pay the remaining 20%, but there will still be a limit as to how much you would have to pay. Check with your Human Resources department for the particulars on your plan. See how much you have to pay out of pocket and what your premiums are, versus what a regular plan would be. Are you normally healthy? Maybe you go to the doctor once per year for about $150. If so, this might be a good plan for you.

Stanley Said:

Health Savings Account penalty/interest for excess funds removal?

We Answered:

Your excess contribution was returned to you in the same year. You cannot deduct that excess contribution, it is part of your gross income and is subject to tax. If it comes from an employer contribution it may appear in Box 1 of your W-2. Otherwise it is entered as "other income."

The amount returned to you should include both the excess contribution and any earnings. It all goes on your tax return. You don't have a penalty on the earnings, just income tax.

Gary Said:

Must Health Savings Account contributions be listed on my W-2 for tax year 2009?

We Answered:

The money is *supposed* to be there, but many employers will issue the W-2 without the W in box 12 because they fail to get the data from the custodian before then. This includes some major government employers. You can ask for a corrected W-2c, but they still may not issue it in a timely faschion.

However the 5498-SA will show you had contributions and your W-2 may even show you had health care through a cafeteria plan in box 14, so yes, the IRS can figure out something is up.

Just filll out the 8889 correctly, putting the money that went through the payroll system pretax, but got to your HSA as funding down in box 9.

Victoria Said:

what banks offer health savings accounts and where should we open ours?

We Answered:

Not offered at banks. Offered by employers.

Norma Said:

Health Savings Account Card - accidentally used?

We Answered:

They will ask you to pay them back.

Chad Said:

Questions about Health Savings Accounts?

We Answered:

I've had an HDHP & HSA since 2005 and love it. Hopefully, you will learn to love it too. Also, it has nothing to do with "screwing the working class". These plans actually help the working class by being less expensive, allowing increased pre-tax deductions, and allowing more flexibility. As with any insurance plans, costs are still "agreed upon" so for your $2000 of deductible you are probably getting $3300 worth of services if you didn't have insurance.

American Chartered Bank offers a fee free HSA and with a low application amount.
http://www.americanchartered.com/persona…
It's pays saving account interest rates (i.e. currently, basically nothing) but like you are finding the plans with any kind of potential "real" interest are also the plans with the high fees so it balances out.